3I posts robust FY results, warns Brexit will weigh on sentiment

LONDON (Reuters) - British private equity firm 3i Group Plc (III.L) said its net asset value rose to £4.5 billion in its annual results on Thursday, warning market volatility and Britain's referendum on the European Union would weigh on sentiment.

Diluted NAV, a key measure of the value of its assets, rose to 436 pence a share in the year to end of March, against 396 pence in the previous year.

3i, which owns Dutch discount retailer Action and lingerie chain Agent Provocateur, said that its total return for the year increased to £824 million, up 20 percent from the previous year.

"The combination of continuing market volatility and the upcoming Brexit referendum is likely to weigh on investor sentiment, with reduced M&A volumes and delays in capital investment likely to persist while the uncertainty remains," said Chairman Simon Thompson.

(Reporting By Anjuli Davies; Editing by Rachel Armstrong)